A fresh bulk deal for imported scrap has been reported in Bangladesh, which has confirmed the increase of $15/mt announced in suppliers’ offers last week. Offer prices have continued to increase, following the uptrend in the global market.
An ex-Australia bulk scrap deal for a total around 20,000 mt has lately been done to Bangladesh, in which HMS I/II 80:20 scrap has been priced at $410/mt CFR, shredded scrap at $425/mt CFR and P&S at $430/mt CFR. Last week, offers for HMS I/II 80:20 had reached $410/mt CFR, up from the previous level of $395/mt CFR, which means the higher offer level has been accepted in the market. But the price difference between HMS I/II 80:20 and shredded scrap has increased from about $5/mt up to $15/mt due to the shortage of the latter in the market.
The outlook is still bullish in the scrap market in Bangladesh as prices in Turkey keep going up and as the situation with tight supply in the global arena is unlikely to ease in the near future. As a result, some fresh offers for HMS I/II 80:20 scrap have already been voiced at $430/mt CFR in Bangladesh.